Recovery and resolution planning

With our technology partners, we helped mitigate operational risk and increase contract data efficiency for a top 3 global custodian

The challenge

US RRP (recovery and resolution planning) is an extremely demanding exercise requiring good data and contracts classification, supported by strong governance and maintenance processes.In response to the recent regulatory efforts analysing RRP plans, a global custodian was in search of a solution that would enhance their living will processes. Our client was looking for a solution to uncover the risks contained within customer contracts that have an impact on their current living will RRP plans.  The objectives of the solution were to provide transparency on contract data in a manner that was readily available, searchable and maintained in an automated manner. The scope of the initiative covered their global business across 550,000 client contracts within 83 legal entities/business units. Our task was to mitigate operational risk and increase efficiency with respect to contract data.

Our approach

With our technology partners we implemented a global repository and analytics engine, which has since been enhanced with machine learning. The tools chosen were Adlib Software and Documentum. These allowed for a scanning/intake process, extraction of the key data elements, classification of the elements and made the data easily searchable. This solution scans for unique files within regional repositories, classifies contracts by region and type, extracts relevant contract data, uploads into a global repository with searchable tags, and dashboards to escalate issues that require management and executive attention.

Our impact

The client was able to embed resolvability concerns into business-as-usual (BAU) processes in an automated manner with a new solution that identifies risks and focuses the group on items where they can make an impact on reducing risk.